Shifting gears: electric cars surge during fuel crisis
A record number of Australian drivers are choosing electric and hybrid vehicles, with low-emission vehicles accounting for half of all new vehicle sales for the first time.
Drivers are slamming the brakes on gasoline and diesel vehicles, and their purchases are dropping by up to 30 percent.
Figures from the Federal Chamber of Automotive Industry and the Electric Vehicle Council on Wednesday revealed the extent of the trend; It showed that hybrid, plug-in hybrid and electric cars accounted for more than 46 percent of all new cars sold in May.
Australians purchased more than 21,300 electric vehicles during the month; This represents nearly one in five new cars sold and broke the record for the third month in a row.
Hybrid vehicles have also proven popular with drivers; Sales of plug-in hybrid cars more than tripled and conventional hybrid vehicles increased by 11 percent.
The increase in low-emission sales follows significant gasoline and diesel price increases fueled by conflict in the Middle East in March and comes a month before the fuel consumption rebate ends.
Chamber president Tony Weber said the rapid switch to more fuel-efficient vehicles showed Australians were keen to avoid further price shocks.
“This shift is particularly evident in the SUV segment, where consumer preferences are changing rapidly,” he said.
“Today’s SUV buyers are increasingly choosing hybrid, plug-in hybrid and electric options.”
While plug-in hybrid sales of SUVs increased by 377 percent in May, electric SUVs increased by 167 percent.
By comparison, gasoline SUVs slowed by 31 percent and diesel models by 41 percent.
Across all vehicle types, drivers bought 30 percent fewer gasoline cars during the month, but they still represented more than one in four vehicles sold.
Toyota remained Australia’s most popular carmaker in May, followed by electric vehicle brand BYD, Ford and Hyundai.
Tesla became Australia’s best-selling vehicle this month, with Model Y selling 5605 units, leaving behind Ford Ranger (4474), Toyota HiLux (4005) and Toyota RAV4 SUV (3865).
Julie Delvecchio, chief executive of the Electric Vehicle Council, said record-breaking sales were a turning point for battery-powered vehicles and showed consumers realized cars could save money.
“When gas prices drop, people look for alternatives,” he said.
“May 2026 is a key moment for Australia’s EV transition.”
Mr Weber said governments should focus on expanding Australia’s charging stations to keep up with the boom in electric car sales.
“The rollout of charging infrastructure must accelerate if Australia is to maintain consumer confidence and support continued uptake,” he said.
“Continued investment and enabling policy settings will be vital.”
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